Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1887-03-30
THE LITTLE DERBY.

AA-A A1A - - - - -
Professor HadIey Appears-Hfs Testf
mony Regarding the ROad-Tts High
Equipment Valuation.
1t was ten minutes past 8 o'clock last nigh
when the members of the Derby railroad
hearing committee filed into room 10 at City
Hall, and removing their hats and overcoatl
got ready to resume the hearing. The first
question fell upon Joel A. Sperry and was
propounded by Attorney Alling. Mr.. Sperry
is director of the Derby road.
"There are many stories afoat," said Mr.
Alling, 'fabout the matter, and I wish to ask
if any conference has been held between you
and Mr. Bishop"
Mr.. Sperry said there had been none.
Attorney Tyler said he had some expert
testimony to offer, and he then called PROBES
sor Arthur Hadley. Mr.. Hadley said that he
was connected with Yale university. He had
made the subject of railroads special study
for over FIVE years. He had written book
on railroad administration. Mr.. Hadley
said he had read reports of the Derby
road to the railroad commissioners.
The last report showed that the
equipment valuation of the road
mad been placed at $163, O67. He then gave
the equipment of rolling stock and what if
new it would cost now. Five locomotives at
$1,000 each, five passenger cars at 81 ,OOO
each, three baggage cars at 50, 500 each, ff-
teen freight cars at $3.50 each, making a
total cost of $8S, 1875 for duplicating this
equipment. The discrepancy, he said, is
large. Of course rolling stock has fallen in
value good deal of late. The Danbury and
Norwalk road has seven locomotives and $50
cars, and places its equipment val
uation at 1928, oOO; the Meri-
den and Cromwell road, two locomo-
tives and fifty cars; the Connecticut
and Western road, IS locomotives and 1856
cars, $343, 900. The Consolidated road has
BATS, 900 stated as its equipment, about hf-
teen times that of the Derby, and it has 121
locomotives against of the Derby and q, 649
cars as against IS of the Derby. If the Con
solidated road had made up its debit like the
Derby i. would be between six and seven
millions of dollars. Nothing more is needed
to prove that the equipment of the Derby il
placed very high. The question is, how did
it occur? It is generally supposed that q
road will wear out and q certain amount
must be taken out of the earnings sufficient
to equal the expense of keep
ing the rolling stock up to
the Standard and failure to do this makes
it's earnings appear as much greater on its
balance sheet and the equipment larger,
with deficiency in the current expenses.
The Derby's equipment is old and has not
been kept in excellent repair. The road was
built at time when the cost of things was
much higher than now. It is capitalized
for $74, 600 per mile, while we find the Dan
bury and Norwalk road is capitalized at
$4,000 per mile. People are concerned
about the earnings of road in regard to It's
valuation.
In answer to q question Prof Hadley said
the repairs of the road had been decreasing
in general way for the last five years.
"Have you any opinion as to what you
could duplicate road just like the Derby
for!' then queried Mr.. Sperry.
''No, sir, 1 have not; it would require en-.
cheering experts to tell you that"
Mr.. Sargent took hold of Prof. Hadley and
asked good many questions. Mr.. Hadley
said that in regard to the equipment one en-
CINE, one baggage car and one passenger ca1
built in the last four or five years by the
Derby was a very small percentage. He said
that as the road was built at a time when It'll
construction account was high, SO would il
be higher still before long on account of tn.
new law regarding the establishment of grade
crossings.
tsDo you think" asked Mr.. Spe1y, ''tha
you could duplicate the Derby road with ths
same amount as in the report to the railroad
commissioners, in which the construction aRo
equipment valuations are part?"
eff the road was built and came in on the
Consolidated railroad tracks it could be don.
for very much less"
"But the people will not patronize tn.
Consolidated road, exclaimed Mr.. Sargent
which remark created a good deal Of
laughter.
HAfter Mr.. Hadley had finished Mr.. Tyler
said he had one more witness to testify as te
the minor point. Mr.. Bunnell, of the arm
of Bunnell & Scranton, brokers, was called
He said that he had offered Mr.. Trowbridge
200 shares of the road at $50, but the Offer
was not accepted.
The hearing was then adjourned till Thurs
day evening at 7:30 o'clock.